diff --git a/winsup/cygwin/ChangeLog b/winsup/cygwin/ChangeLog
index ed681b59e..df44ea262 100644
--- a/winsup/cygwin/ChangeLog
+++ b/winsup/cygwin/ChangeLog
@@ -1,3 +1,7 @@
+2008-05-20  Corinna Vinschen  <corinna@vinschen.de>
+
+	* syscalls.cc (rename): Fix condition when to start a transaction.
+
 2008-05-20  Corinna Vinschen  <corinna@vinschen.de>
 
 	* path.cc (path_conv::check): Free wide_path and normalized_path if
diff --git a/winsup/cygwin/syscalls.cc b/winsup/cygwin/syscalls.cc
index 82f745bb8..aa4819d6d 100644
--- a/winsup/cygwin/syscalls.cc
+++ b/winsup/cygwin/syscalls.cc
@@ -1718,7 +1718,8 @@ rename (const char *oldpath, const char *newpath)
      have to start the transaction here, if necessary. */
   if (wincap.has_transactions ()
       && (dstpc->fs_flags () & FILE_SUPPORTS_TRANSACTIONS)
-      && (dstpc->isdir () || dstpc->has_attribute (FILE_ATTRIBUTE_READONLY)))
+      && (dstpc->isdir ()
+	  || (!removepc && dstpc->has_attribute (FILE_ATTRIBUTE_READONLY))))
     start_transaction (old_trans, trans);
 
   /* DELETE is required to rename a file. */